Many of us know the time was right this year to refinance your mortgage, so does the same go for your vehicle? We are stretching your dollar with why Consumer Reports says it does.
Experts at True Car say one reason is that – it’s less time-consuming. You can get it done in a few hours rather than weeks it takes to refinance a mortgage.
Here are three things to consider before you do it:
Consider where you are in the life of your loan. It’s better to refinance earlier when you have a lot of payments left, assuming you get a better rate. Refinancing late may not make a huge difference.
Consider plugging your numbers into a refinance calculator first to see what you’re likely to save. Compare what you’d get at your current lender to online lenders like Lending tree or Credit Karma.
Lastly, find out if there are fees associated with refinancing. If so, you want to make sure those don’t outweigh the benefits you’d receive.
You should always check with your lenders to make sure there aren’t penalties for paying off a loan early or making extra payments. If not, that may be an even better choice than refinancing – trying making an extra couple of payments this year to accelerate the loan.